I just noticed that when opening a stock trading app, I often see strange abbreviations after the stock name, such as CA, XD, XM, T1, T2. I don't really know where these come from. I looked into it and found that CA stands for Corporate Action, which indicates that this stock will have some movement within the next 7 days, and you can click to see the details to find out what it is about.

Stocks with CA are divided into three main groups. The first group is the X series, which starts with the letter X, short for Excluding, meaning investors will not receive certain rights. For example, XD (Excluding Dividend). If you buy the stock during the XD period, you will not receive the dividend this round, but if you hold until the next XD, you will receive the dividend in the following round.

Besides XD, there is also XM (Excluding Meetings), which means no voting rights at shareholder meetings; XW (Excluding Warrant), which means no warrant purchase rights; XR (Excluding Right), which means no rights to subscribe to new shares; and many others. The key point is to understand these before trading, or you might miss out on certain rights.

The second group is the T series, related to high speculation. Stocks marked with T have prices soaring so high that the stock exchange has to implement control measures. They are categorized as T1, T2, T3 in order. T1 is the initial level, where trading must be done only with a Cash Balance account. If a T1 stock with CA continues to meet the criteria, it can be upgraded to T2, which cannot be used as collateral. If it meets the criteria again, it becomes T3, which cannot be settled by offsetting (Settlement). This means sellers have to wait until the next day to buy back.

The third group includes warning signs, such as H (Trading Halt), meaning trading is temporarily suspended for one session; SP (Trading Suspension), meaning suspension lasts more than one session; NP (Notice Pending), indicating the company has filed a report with the stock exchange; NC (Non-Compliance), meaning the company is subject to delisting; ST (Stabilization), which indicates efforts to stabilize the price; and C (Caution), a warning to investors to be careful because the company has financial issues.

Actually, stocks with CA are not that complicated. The important thing is to understand them before investing because each symbol indicates what will happen to that stock. Just clicking to see the details will tell you what it’s about. Once you understand the meaning of these abbreviations, your investment confidence will increase.